BILL NUMBER: AB 404	CHAPTERED  09/27/99

	CHAPTER   485
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 27, 1999
	PASSED THE SENATE   SEPTEMBER 2, 1999
	PASSED THE ASSEMBLY   JUNE 1, 1999

INTRODUCED BY   Assembly Member Kuehl

                        FEBRUARY 12, 1999

   An act relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 404, Kuehl.  Estate taxes:  satisfaction.
   Existing law requires the Controller to examine and settle the
accounts of all persons indebted to the State of California and to
direct and superintend the collection of all money due the state.
   This bill would direct the Department of General Services to
accept a deed on behalf of the Controller's office in lieu of
foreclosure for the 160 acres of specified real property located in
the County of Los Angeles and in lieu of the estate taxes and
interest due as a result of the default in payments for the purchase
of the property by the Mountains Recreation and Conservation
Authority on March 26, 1996.
   The bill would also authorize the Department of Parks and
Recreation to exchange or sell the real property, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares that on or about
February 23, 1995, the Controller's office accepted an assignment of
a note secured by a deed of trust on 160 acres of real property
located in Malibu, California, as security for estate taxes and
interest on the estate of Frank Capra.  The property had been
purchased from the Capra estate by the Mountains Recreation and
Conservation Authority.  The Mountains Recreation and Conservation
Authority defaulted on its payments to the Controller on March 26,
1996.
   On behalf of the Controller's office, the Department of General
Services is hereby directed to accept a deed in lieu of foreclosure
for the 160 acres of real property described as follows:
   Parcel 1.  The northwest quarter of the southwest quarter of
Section 14, Township 1 South, Range 19 West, San Bernardino meridian,
in the County of Los Angeles, State of California, according to the
official plat thereof.
   Parcel 2.  The east half of the southeast quarter of Section 15,
Township 1 South, Range 19 West, San Bernardino meridian, in the
County of Los Angeles, State of California, according to the official
plat thereof.
   Parcel 3.  The southeast quarter of the northeast quarter of
Section 15, Township 1 South, Range 19 West, San Bernardino meridian,
in the County of Los Angeles, State of California, according to the
official plat thereof.
   The Controller shall determine whether acceptance of the deed will
fully satisfy the estate taxes and interest due on the Capra estate.
  If the Controller makes this determination, then the Department of
General Services shall accept the deed on behalf of the Controller in
full satisfaction of the estate taxes and interest due on the Capra
estate.  If the Controller determines that acceptance of the deed
will not fully satisfy the amount of taxes and interest owed on the
Capra estate, then the Legislature finds and declares that acceptance
of the deed serves a public purpose because it will allow the
completion of the Backbone Trail of the Santa Monica Mountains, and
the Department of General Services may accept the deed on behalf of
the Controller in lieu of any estate taxes and interest due on the
Capra estate.  The property shall be transferred to the Department of
Parks and Recreation.  The Department of General Services shall pay
the administrative and staff costs it incurs as a result of the
acquisition and transfer of the estate.  All other costs associated
with the acquisition of the estate shall be paid by the Department of
Parks and Recreation.
   Notwithstanding any other provision of law, the Department of
Parks and Recreation may do either of the following:
   (a) Exchange the real property for property of equal or greater
fair market value and recreational utility.
   (b) In the event that an exchange is not accomplished within one
year of the effective date of this act, the department may sell the
real property and deposit the proceeds from the sale, less any actual
costs associated with the sale, in the State Parks and Recreation
Fund for appropriation by the Legislature.
   The department shall not convey any land or lands pursuant to this
section unless the conveyance includes appropriate deed restrictions
that require that the land or lands be retained for public
recreation or resource protection purposes, or both, and provide for
the completion of the Backbone Trail in the Santa Monica Mountains.
